HBM Income Poised To Cross $10B as SK hynix Predicts First Double-Digit Income Share

Providing some uncommon perception into the dimensions of HBM reminiscence gross sales – and on its development within the face of unprecedented demand from AI accelerator distributors – the corporate just lately disclosed that it expects HBM gross sales to make up “a double-digit proportion of its DRAM chip gross sales” this yr. Which if it involves go, would symbolize a big soar in gross sales for the high-bandwidth, high-priced reminiscence.

As first reported by Reuters, SK hynix CEO Kwak Noh-Jung has commented that he expects HBM gross sales will represent a double-digit proportion of its DRAM chip gross sales in 2024. This prediction corroborate with estimates from TrendForce, who consider that, industry-wide, HBM will account for 20.1% of DRAM income in 2024, greater than doubling HBM’s 8.4% income share in 2023.

And whereas SK hynix doesn’t break down its DRAM income by reminiscence kind frequently, a little bit of extrapolation signifies that they are on observe to absorb billions in HBM income for 2024 – having probably already crossed the billion greenback mark itself in 2023. Final yr, SK hynix’s DRAM income $15.941 billion, in keeping with Statista and TrendForce. So SK hynix solely wants 12.5% of its 2024 revenues to come back from HBM (assuming flat or optimistic income total) with a purpose to go 2 billion in HBM gross sales. And even it is a low-ball estimate.

Total, SK hynix presently instructions about 50% of HBM market, having largely break up the market with Samsung during the last couple of years. On condition that share, and that DRAM {industry} income is predicted to extend to $84.150 billion in 2024, SK hynix might earn as a lot as $8.45 billion on HBM in 2024 if TrendForce’s estimates show correct.

It ought to be famous that with demand for AI servers at file ranges, all three main makers of DRAM are poised to extend their HBM manufacturing capability this yr. Most notable here’s a nearly-absent Micron, who was the primary vendor to start out delivery HBM3E reminiscence to NVIDIA earlier this yr. So SK hynix’s near-majority of the HBM market might falter some this yr, although with a rising pie they will have little purpose to complain. In the end, if gross sales of HBM attain $16.9 billion as projected, then all reminiscence makers might be having fun with vital HBM income development within the coming months.

Sources: Reuters, TrendForce